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#30714 - 07/23/07 12:40 AM Entering personal exps. in sole proprietorship
nbails
Member


Registered: 03/16/05
Posts: 8
Loc: Canada 		I run my business as a sole proprietorship and I'm not sure where to post personal expenses i.e. housecleaning expenses???

Where should these types of expenses be posted? Owners Withdrawls??? Retained Earnings?????
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#30722 - 07/23/07 11:05 AM Re: Entering personal exps. in sole proprietorship [Re: nbails]
Ralph Allan Moderator
 Member


Registered: 05/16/03
Posts: 949
Loc: Prince George BC Canada 		There are quite a number of regulations about this, and they can be complex.

The only way to stay out of trouble with the taxman is to get the advice of an accountant.
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Ralph Allan Business Computer Centre Prince George BC Canada See us on the web: www.bccentre.bc.ca

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#30730 - 07/23/07 08:51 PM Re: Entering personal exps. in sole proprietorship [Re: Ralph Allan]
Plus65
Member


Registered: 03/16/06
Posts: 79
Loc: Ontario 		It is not good practice to use business funds to pay personal expenses.
Transfer funds from the business account to a personal account on a periodic basis as Owner's Draw and pay personal funds from the personal account.
Some of my proprietorship clients write a cheque to themselves each time they write cheques for employees' wages.

Plus 65
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#30823 - 07/29/07 12:17 PM Re: Entering personal exps. in sole proprietorship [Re: nbails]
ErnestTwo
Member


Registered: 02/11/05
Posts: 26
Loc: Carbonear, Newfoundland 		It would be wise to check with an accountant because you may be paying personally for legitimate business expenses and visa versa. If you know it is a legimate personal expense here is how I have handled it. In my accounts I have a "due to ""my name"" in liabilities. Each week a portion of my wages is posted to this account (this can be set up in the payroll module). Then when I need to pay for a personal expense that I have incurred IE a personal purchase on my business VISA I post an offsetting amount to my "due to" account. I find this is very helpful because it keeps a little mad money squireled away.
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#30944 - 08/07/07 09:52 AM Re: Entering personal exps. in sole proprietorship [Re: nbails]
donghuihui
Member


Registered: 08/07/07
Posts: 2
Loc: china shanghai 		It is a good advice ti get the advice of an accountwho will make something simple
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